On June 16, the Australian House of Representatives passed a motion condemning the proposed arrangement.

Australia wants to send 800 asylum seekers to Malaysia, taking 4,000 confirmed refugees in return.

Malaysia is not a signatory to the United Nations conventions on treatment of refugees.

Ms Gillard's aim is to deter asylum seekers from coming to Australia by boat.

Immigration Minister Chris Bowen has said he is on "very strong legal ground" with the plan.

The Australian newspaper reported that negotiations with Malaysia are currently stuck on Australia's insistence that asylum-seekers sent to Malaysia be given identity papers to ensure they are not harassed by police.

It said that Australia wants Kuala Lumpur give an explicit commitment not to send refugees back to the country they fled.